HFT Investment Management (HK) (HFT HK) has launched its second Renminbi (RMB) bond fund known as, HFT (HK) China High Yield Bond Fund.

The new fund follows the granting of an RQFII quota of RMB800 million by the China State Administration of Foreign Exchange in May 2013.

HFT HK launched its first RQFII fund in January 2012 with a RMB1.1 billion quota.

According to HFT (HK), the new fund will focus on the investors seeking high income and regular dividend distribution and who are comfortable with the risks associated with high yield bonds.

The China High Yield Bond Fund aims to achieve income generation and long-term capital appreciation by investing primarily in debt instruments issued and distributed in the PRC and Hong Kong.

The two features offered by the new fund will include monthly income distribution and flexible and liquid investment in 6 different currencies.

The fund’s initial public offering period is from 12 November to 11 December with the fund itself being launched on 12 December 2013.

Jelle Vervoorn, CEO of HFT HK, said: "The fixed income instruments in various Chinese markets offer different opportunities in terms of yield and liquidity. The fund combines bonds traded in all markets to offer a truly diversified portfolio aiming to reap the best of all these markets."